Question: Drinkable Water Systems is analyzing a project with projected cash inflows of $166,200, $166,200, and $46,000 for Years 1 to 3, respectively. The project costs

Drinkable Water Systems is analyzing a project with projected cash inflows of $166,200, $166,200, and $46,000 for Years 1 to 3, respectively. The project costs $251,000 and has been assigned a discount rate of 12.5 percent. Should this project be accepted based on the discounting approach to the modified internal rate of return? Why or why not?

	A.	Yes; The MIRR is 12.85 percent.
	B.	No; The MIRR is 11.68 percent.
	C.	No; The MIRR is 12.85 percent.
	D.	No; The MIRR is 11.35 percent.
	E.	Yes; The MIRR is 11.35 percent.

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